Genting to acquire Crystal Cruises in US$550m deal

Genting to acquire Crystal Cruises in US$550m deal

Nippon Yusen Kabushiki Kaisha, parent company of Crystal Cruises’ since its inception in 1988, has announced it has entered into an agreement with Genting Hong Kong to sell the organisation.

The acquisition is expected to close in the second quarter of 2015.

With the support of GHK’s financial strength and expertise in ship design, Crystal Cruises’ fleet size will expand with a new ship, elevating the standard of luxury cruising and luxury cruise ships.

Crystal’s fleet currently features Crystal Symphony and Crystal Serenity.

“After 25 successful years with NYK, we are excited to have Genting Hong Kong as the new owner of Crystal Cruises,” said Edie Rodriguez, president, Crystal Cruises.

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“The proposed expansion of our fleet will present our loyal Crystal Society members and new luxury cruise guests with more itinerary options, accommodation choices and exceptional vacation experiences, as we continue to position Crystal as the innovative leader in global luxury cruising.

“Additionally, Crystal’s veteran leadership, management and crew will continue to focus on our award-winning guest service and our strong partnership with the travel agent community - which now has a greater opportunity to grow their business with a larger menu of Crystal product offerings.”

Established in 1993, GHK is part of the Genting Group, a global hospitality and leisure company with businesses in over 20 countries, including the United States in New York, Florida and Nevada.

GHK wholly owns Star Cruises and is a major shareholder of Norwegian Cruise Line.

It is a public company primarily listed on the Hong Kong Stock Exchange and secondarily on the Singapore Stock Exchange.

“Crystal Cruises offers the epitome of luxury cruising and the service standard which all other cruise lines aspire to,” said Tan Sri Lim Kok Thay, chairman, GHK.

“The current management team and crew will continue to lead Crystal Cruises. Genting will provide financial resources and proven expertise in innovative ship design to build a new ship that will set the highest standard in luxury cruise ships.

“This new ship, together with Crystal’s legendary six-star service, will reinforce Crystal Cruises’ reputation as the world’s leading luxury cruise line for decades to come.”

Under the terms of the agreement, GHK will acquire Crystal Cruises for US$550 million in cash which is subject to certain adjustment items to be ascertained after the closing. 

Crystal Cruises’ two ships have approximately 1,992 lower berths and the consideration has been determined on a cash-free and debt-free basis, translating into an enterprise value to lower berth ratio of approximately US$276,000.